This is one of the fundamentally sound and well diversified company in steel Industry. It is the flagship company of the Raipur based, Hira group of Industries located in Chattisgarh and was incorporated in sep 1999. Initially it produced only sponge Iron , but then over a period of time it diversified into value added products like billets, HB wires and captive power plant run on waste gases emanated from its own kilns. It commenced with an annual production of 105000 tpa of sponge Iron and since then has increased its capacity five fold to become one of the largest producer of sponge Iron in India. Billet and HB wires are produced through its wholly owned subsidiaries. The company has tied up with Chhattisgarh Govt. for access to coal and Iron ore mines. The Chhattisgarh Govt. has given permission for mining, but clearance from Forest dept. is still pending. In sep 2007 the company had commissioned its expansion projects in which sponge Iron & steel billets capacity was raised by 60 – 100 % to 495000 tpa and 400000 tpa respectively. The captive power plant capacity has been raised from 28mw to 53mw. Mining reserves include 15 mill.ton. of Iron ore and 63 mill.ton. of non-coking coal. The benefits of expansion will be fully reflected in the coming quarter results. The news of Forest dept. giving clearance for mining might give a fillip to the market price of the company. Buy now at declines below 180 for decent gains, expected price within one year is 400.
Risk factors include the company prospects solely depend on steel demand. Non clearance for mining from the Forest dept. might depress the prices.
Earlier short term recommendations –
| Scrip | Recommendations | Target | Remarks |
| Reliance Power | sell@384 | 371 | Target hit |
| Cipla | sell@201 | 194 | hold |
| Zee Ent. | sell@262 | 248 | Target hit |
| Hindalco | sell@201 | 194 | Target hit |
| Colgate | sell@409 | 392 | Target hit |
| Satyam | sell@438 | 426 | Target hit |
| LIC Hsg Fin | sell@299 | 292 | Target hit |
| Gitanjali gems | sell@295 | 286 | Target hit |
Today’s short term recommendations –
| Scrip | Recommendations | Target | Remarks |
| Titan Ind. | sell@1074 | 1054 | -- |
| Rel. energy | sell@1310 | 1276 | -- |
| ICICI Bank | sell@882 | 864 | -- |
Short term trading is always risky, it is better to go for long term investment with a perspective of at least 1 year.
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